Vietnam Active Pharmaceutical Ingredients Market to Grow with a CAGR of 7.42% through 2030
Expansion of pharmaceutical manufacturing capabilities
is expected to drive the Vietnam Active Pharmaceutical Ingredients Market
growth in the forecast period, 2026-2030.
According to TechSci Research
report, “Vietnam Active Pharmaceutical Ingredients Market - By Region,
Competition, Forecast and Opportunities, 2030F”, the Vietnam Active
Pharmaceutical Ingredients Market stood at USD 472.77 Million in 2024 and is expected to reach USD
728.10 Million by 2030 with a CAGR of 7.42% during the forecast period.
The Vietnam Active
Pharmaceutical Ingredients (API) Market is experiencing significant growth,
driven by the increasing demand for both prescription and over-the-counter
(OTC) medicines. With a rapidly growing population, a rising incidence of
chronic diseases, and a steadily improving healthcare infrastructure, Vietnam's
pharmaceutical industry is poised for continued expansion. As the demand for
high-quality medicines increases, there is a corresponding rise in the need for
active pharmaceutical ingredients that form the backbone of pharmaceutical
production. The market is characterized by a robust growth trajectory, both in
terms of domestic production and imports.
Vietnam’s healthcare landscape
is evolving, with a focus on improving access to medicines and healthcare
services across the country. This evolution is largely due to government
efforts aimed at increasing healthcare expenditure, upgrading medical facilities,
and enhancing the overall healthcare system. The Vietnamese government has
introduced various policies to support the domestic pharmaceutical industry,
including incentives for manufacturers and a push for greater self-sufficiency
in pharmaceutical production. These efforts are critical for reducing the
country's reliance on imported medicines and APIs. While Vietnam remains
dependent on imports for a large portion of its API requirements, there has
been an increasing shift toward local manufacturing of APIs, particularly
generic drugs, to meet domestic demand.
The generic pharmaceutical
segment is a key driver of the API market. As the Vietnamese population becomes
more health-conscious and as healthcare costs rise, there is an increasing
demand for affordable medications, especially for chronic conditions like
diabetes, hypertension, and cardiovascular diseases. Generic drugs, which are
more affordable than their branded counterparts, rely heavily on generic APIs.
The surge in the availability and use of generics has been an important factor
in the market's growth. With the government’s support for generic drug
production and initiatives to strengthen local manufacturing capabilities,
domestic API production has been ramping up to cater to this growing demand. The
rise in chronic diseases and the increase in life expectancy have contributed
to the growing demand for prescription medicines, which in turn fuels the need
for active pharmaceutical ingredients in the market.
Despite the growth in local
manufacturing, the import market for APIs still holds a substantial share in
Vietnam. India and China remain the dominant suppliers of raw materials,
offering APIs at competitive prices. This reliance on foreign sources for high-quality
raw materials presents both opportunities and challenges. While affordable
imports provide cost-effective solutions, they also make local API
manufacturers vulnerable to global supply chain disruptions and price
fluctuations. In recent years, however, the Vietnamese government has been
making strides to address these challenges by encouraging more domestic
production and attracting foreign investments in API manufacturing.
The pharmaceutical
manufacturing clusters in major industrial regions like Ho Chi Minh City in
Southern Vietnam are also playing a pivotal role in the API market's growth.
The southern region, in particular, has become a hub for pharmaceutical
production, with a concentration of both local manufacturers and international
pharmaceutical companies. These clusters benefit from economies of scale,
access to a skilled workforce, and proximity to major ports, making them ideal
locations for API production. The focus on improving research and development
(R&D) and upgrading manufacturing facilities to meet Good Manufacturing
Practices (GMP) is positioning the country as a competitive player in the
global API market.
The increasing demand for
biological APIs in the treatment of complex diseases like cancer, rheumatoid
arthritis, and autoimmune conditions is driving further market growth. Although
the biological API segment remains smaller compared to traditional chemical
APIs, its growth potential is significant. The rise in biopharmaceuticals is
also spurred by the increasing adoption of biosimilars, which are expected to
dominate the market in the coming years. As Vietnam's pharmaceutical market
matures, there is a growing need for more sophisticated and high-quality APIs
to meet the demand for biologics and other advanced therapies.
As Vietnam’s pharmaceutical
sector continues to expand, there is also a growing focus on regulatory
compliance and adherence to international quality standards. The Vietnamese
government has been aligning its regulatory framework with international norms
to ensure that locally produced APIs meet global standards. This push for
regulatory compliance, coupled with growing manufacturing capabilities, is
helping improve the quality of Vietnamese APIs, making them more competitive in
the international market.
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"Vietnam Active Pharmaceutical Ingredients Market”
The Vietnam Active
Pharmaceutical Ingredients Market is segmented into type, type of drug, type of
synthesis, type of manufacturer, application, regional distribution, and
company.
Based on application, Cardiovascular
Diseases (CVD) was the dominant therapeutic category driving the demand for
APIs. The rising prevalence of cardiovascular diseases in Vietnam has been a
significant factor in shaping the market dynamics. As Vietnam's population
grows older, lifestyle changes, and dietary habits evolve, the incidence of
heart disease, hypertension, and stroke is increasing, making cardiovascular
treatments one of the leading therapeutic areas. CVD is one of the primary
contributors to the disease burden in the country, prompting the need for
effective pharmaceutical treatments.
The increasing rates of
hypertension and other heart-related conditions are particularly contributing
to the demand for cardiovascular APIs, which are essential in the formulation
of medicines that control blood pressure, cholesterol levels, and heart function.
Many of the most commonly prescribed drugs for CVD, such as antihypertensive,
antiplatelet, and statins, require high-quality APIs for their production.
These medicines form the backbone of the cardiovascular treatment landscape and
are widely used by the aging population in Vietnam.
In addition, the rapid
urbanization of Vietnam and the increase in sedentary lifestyles, unhealthy
diets, and smoking contribute to the rising burden of cardiovascular diseases.
The Vietnamese government and healthcare providers are responding to this growing
issue by focusing on preventive healthcare and expanding access to
cardiovascular medications, further driving the demand for APIs related to this
therapeutic area. As a result, pharmaceutical manufacturers in Vietnam are
ramping up the production of cardiovascular drugs to meet this escalating need,
which directly affects the demand for cardiovascular APIs.
Based on region, Central
Vietnam is the second-dominant region after Southern Vietnam. While Southern
Vietnam, particularly Ho Chi Minh City, has historically been the primary hub
for pharmaceutical manufacturing and API production, Central Vietnam has
increasingly emerged as an important contributor to the country's
pharmaceutical landscape. This region benefits from several key factors, such
as its strategic location, improving infrastructure, and growing investment in
the pharmaceutical sector.
One of the significant factors
driving the growth of the API market in Central Vietnam is the region's focus
on industrial development and healthcare infrastructure expansion. Cities like
Da Nang are becoming key centers for pharmaceutical manufacturing, with several
new manufacturing plants and distribution networks being established in recent
years. The Vietnamese government has prioritized the development of industrial
zones in Central Vietnam, providing incentives for pharmaceutical companies to
set up production facilities in this region. This has led to an increase in
local API production capacity, helping meet both domestic demand and export
requirements.
Major companies operating in the
Vietnam Active Pharmaceutical Ingredients Market are:
- Bayer
Vietnam Ltd.
- DHG
Pharmaceutical Joint Stock Company
- Traphaco
Joint Stock Company
- Pharmaceutical
Corporation Ha Tay
- Domesco
Medical Import Export Joint Stock Corporation (DOMESCO)
- OPC
Pharmaceutical Joint Stock Company
- Sanofi-Aventis
Vietnam
- Mekophar
Chemical and Pharmaceutical JSC
- Imexpharm
Pharmaceutical Joint Stock Company
- Pymepharco
Joint Stock Company
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“The future of the Vietnam
Active Pharmaceutical Ingredients (API) Market looks promising, driven by an
expanding pharmaceutical sector and increasing demand for both generic and
innovative drugs. With rising healthcare needs due to the aging population and
a growing prevalence of chronic diseases, the demand for high-quality APIs will
continue to grow. Vietnam's push for greater self-sufficiency in API
production, along with government incentives to foster local manufacturing,
will strengthen the domestic API industry. Advancements in biopharmaceuticals
and biosimilars are expected to play a crucial role in shaping the market. The
continued growth of the pharmaceutical manufacturing infrastructure,
particularly in Southern and Central Vietnam, combined with improving
regulatory standards, positions the API market for sustained growth and greater
global competitiveness”, said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based management consulting firm.
“Vietnam Active Pharmaceutical Ingredients Market By Type (Generic APIs and Innovative APIs), By
Type Of Drug (Prescription and OTC), By Type Of Synthesis (Synthetic and
Biotech), By Type Of Manufacturer (Captive APIs and Merchant APIs), By
Application (Cardiovascular Diseases, Oncology, CNS & Neurology,
Orthopedic, Endocrinology, Pulmonology, Gastroenterology, Nephrology,
Ophthalmology, and Others), By Region, Competition, Forecast and Opportunities, 2020-2030F”, has evaluated the future growth potential of
Vietnam Active Pharmaceutical Ingredients Market and provides statistics &
information on market size, structure and future market growth. The report
intends to provide cutting-edge market intelligence and help decision-makers
take sound investment decisions. Besides, the report also identifies and
analyzes the emerging trends along with essential drivers, challenges, and
opportunities in Vietnam Active Pharmaceutical Ingredients Market.
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